2. ABC Inc. manufactures several different products including product X and product Y. ABC uses activity- based costing, such that the total manufacturing overhead for the month, of $750,000, is assigned to the following cost pools with the corresponding activity levels: Cost Pool Activity Cost Driver Setups $ 100,000 100 no. of setups Maintenance $ 250,000 1,250 machine hours Packing and shipping $ 400,000 200 no. of deliveries The following information for products X and Y for the current month is available: X Y No. of units produced 100 100 Sales Price per unit 3,300 3,400 Direct material cost $ 200,000 200,000 Direct labor cost (at $10 per hr) $ 20,000 30,000 No. of setups 8 4 Machine hours 350 250 Deliveries 20 25a. If ABC were to use a single, predetermined overhead rate of $40 per direct labor hour, how much would each product (X and Y) cost? b. Using activitybased costing, how much does each product (X and Y) cost? e. If there is a difference between your answers to (a) and (b), why is this? W'hat costs are driving the difference? (1. Which answer (a) or (b) should ABC use in decisionmaking? And why is it better for decisionmaking